The X Factor judge has been looking for possible collaborations for her comeback single and is currently in discussions to work with DJ Roger Sanchez.
Speaking to the News of the World, Sanchez said: "Dannii is very professional in the studio, she's very sweet and always open to new ideas.
"I was very impressed at how dedicated she is - she's a great pop writer and we're talking about new projects."
Minogue, who has been working on her fashion range as well as being a mum to baby son Ethan, had previously recorded a track titled 'Because You're Beautiful', which was written by former X Factor contestant Ruth Lorenzo.
The song is expected to appear on Minogue's comeback LP.
Sanchez has recently worked with McFly's Danny Jones and Girls Aloud's Sarah Harding.